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BL Research Bureau

The sale of Sil range of jams and other processed foods to Danish business house, Good Food Group, will not have a significant impact on the revenues and earnings of Marico. The Sil brand has been on the block for sometime and has been a negligible contributor to Marico’s business.

The divestment of the brand is in keeping with Marico’s strategy of addressing the wellness segment by focusing on functional food products.

Even in its edible oils business, Marico has been gradually moving from low-margin products to blended oils that can command premium pricing.

Marico intends to build a presence in such niche products, where larger players such as Hindustan Unilever and Nestle are not present.

The jams and processed foods business, on the other hand, is a highly competitive segment and matching the huge promotional outlays of larger players tends to be a challenge.

This is why Sil has not been the focus of Marico’s operations in recent years.

Marico has sold the business on a slump sale basis for an undisclosed sum.

The proceeds of the sale are unlikely to be substantial and might, at best, aid Marico’s promotional spends on new launches.

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